Bond Traders Roiled by Fed See US Shutdown as Next Big Wild Card
- A flight to havens could arrest the Treasury market’s selloff
- Yet it may erode confidence by underscoring US dysfunction
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To judge by recent history, a US government shutdown won’t be a huge event for the bond market. If anything, it could even provide a little short-term relief, since Treasuries usually rally when investors need somewhere to hide.
But it’s also adding a big dose of what financial markets hate the most: uncertainty.